Corporate Social Responsibility (CSR) in Canada: Vital Signs

Over the past decade, CSR has moved up the discussion agenda in the boardrooms of Canadian businesses and in civil society, government, and financial institutions. Its early adoption by select industry leaders is beginning to change the nature of key business variables, ranging from access to capital, return on investment, and government regulation to consumer trends and employee recruitment. What are the vital signs of corporate Canada's CSR engagement? And, is CSR resonating with Canadians?

In a recent survey of Canadian CSR business leaders and consumers, Ipsos Reid and Canadian Business for Social Responsibility (CBSR) found that 68% of the Canadian public is paying attention to issues related to corporate social responsibility. Despite evidence corporate Canada is investing time and money in developing CSR policies and programs, these activities have not yet had the desired impact: the majority of Canadian consumers remain either uninformed or unimpressed by corporate actions. With 68% of Canadians paying attention to these issues, there appears to be a serious business advantage to those companies that can integrate and communicate CSR effectively.

Three-quarters of business leaders say their firms have "made an explicit commitment to CSR" and close to the same number assert that their companies have "developed formalized policies for CSR activities" or "created and implemented programs related to CSR." Canadian consumers, however, remain considerably unaware of companies' practices and initiatives: only one third to four in ten are aware of any companies engaged in making an explicit commitment to CSR, having formal CSR policies in place, or having implemented CSR initiatives.

Vital signs of corporate social responsibility in Canada? Findings like these reveal that Canadian companies are either missing or underutilizing the real opportunities to impress their number one stakeholder: the Canadian consumer. Our survey shows that 45% of companies involve their stakeholders in the development and evaluation of their CSR activities, whereas fully 71% of Canadians would have a favorable impression of companies who did so. For companies to take their CSR to the next level, they need to align their actions with the interests of their stakeholders.